Agenda - Council - 09/08/1981 - Laserfiche WebLink

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I The Honorable Thomas G. Gamec i August 21, 1981 Page 3 , m that is required by the community s growth. But the new law establishes · a new standard for measuring growth. Under the old law, community mgrowth was measured'~ population. 'The new law requires that communi~ growth be measured ~ the number of homesteads in the community (the. number of homesteads is certified to the state by the county auditor). m Third, and even more significant, the state will not pay for any increase in the property tax of a homeokmer through the homestead credit program or m proper~ tax refund program which results 'from an increase in a local government's levy of more than eight percent over the previous year. This means that, if local governments raise the property tax more than m eight percent over the previous year's amount, the property tax of homeowners in those communities will go up by the amount of the increase that is over eight percent. The impact of an increase of more than m eight percent in a homeowner's property-tax will no,be cushioned ~ an increase in the amount of the state-paid homestead credit he or she is allotted. m You should be aware that homeowners will see and, no doubt, feel the impact of an increase in their proper~ tax of over eight percent. Thus, ~ the representatives of a local government which increases its levy amount m/'above eight percent may have to deal with a reaction from homeowners in /the communi~. Still, on the more positive side, the compromise incorporated /into the new law ensures that, while their proper~ tax my increase, ihomeowners will not at the same time have to face even higher increases in the state income and sales taxes caused ~ the state having to direct more state revenue into the state-paid homestead credit program. I Again, thank you.for y6ur letter. I GOVERNOR